NVS Company Profile

Novartis AG (NVS) is a healthcare solutions provider that offers medicines, preventive vaccines and diagnostic tools, generic pharmaceuticals, and consumer health products around the globe. It operates in four segments: pharmaceuticals, vaccines and diagnostics, sandoz, and consumer health. Novartis was founded in 1895 and is headquartered in Basel, Switzerland.

Novartis News

Before the opening bell on Tuesday, a number of big name, dividend paying companies announced their quarterly earnings. Below, we look at these earnings reports and break down the important points for investors.

Before Thursday's opening bell, a number of big name, dividend paying companies announced their quarterly earnings. Below, we look at these...

Novartis AG (ADR) Sells Diagnostics Business for $1.68B (NVS)

Nov 11, 2013

On Monday, healthcare company Novartis AG (ADR) (NVS) announced that it has sold its diagnostics business for $1.68 billion in cash.
NVS's Strategic Review
As part of the company's strategic review, NVS has sold its blood transfusion diagnostics business to Barcelona-based Grifols. The business was previously a part of Chiron, a biotechnology company that was acquired by NVS in 2006. NVS's chief executive Joseph Jimenez reported that the sale was part of a company plan to focus on its larger businesses.
The company's diagnostics business also works with Johnson & Johnson (JNJ) and with Hologic (HOLX). The deal has been approved by both of these companies.
Additional Sales May be in NVS's Future
NVS's decision to sell off the business was highly expected by analysts. The company may also decide to divest in its vaccines and diagnostics, over-the-counter (OTC) products, and animal health businesses. Several other pharmaceutical companies have been restructuring their businesses to meet investor demands.
Stock Performance
Novartis shares were mostly flat during pre-market trading Monday. The stock is up 22% YTD.

The Bottom Line

Shares of Novartis AG (ADR) (NVS) have a 3.28% yield based on Friday's closing price of $77.25.
Novartis AG (ADR) (NVS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Healthcare solution provider, Novartis AG (NVS) failed to win patent protection for Glivec on Monday.
The court in India has rejected patent protection for NVS's cancer drug Glivec. The denial of the patent protection came as a major disappointment to the company, but as a victory for makers of low priced generic drugs.
India's generic drug industry has turned into a $13 billion a year industry, which comes to a great relief to a majority of the country's 1.2 billion residents who are unable to afford expensive patent protected drugs.
India's Cipla Ltd and Natco Pharma Ltd are two companies that will benefit from the rejection of patent protection. The companies already sell a generic version of the drug at a price one-tenth of the patented drug.
The decision to block the patent protection for NVS comes after a legal battle which began in 2006. There has been much controversy regarding high priced drugs in the country.
Novartis shares were up 59 cents, or 0.83% during premarket trading Tuesday. The stock has increased 28% in the past year.
The Bottom Line
Shares of Novartis AG (NVS) have a 3.56% yield, based on Monday's closing price of $71.06.
Novartis AG (NVS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

JPMorgan Upgrades Novartis to "Overweight" (NVS)

Mar 15, 2013

JPMorgan reported on Friday that it has upgraded healthcare product giant, Novartis AG (NVS) .
The firm has increased its rating for the company from "Neutral" to "Overweight."
An analyst from the firm commented, "we upgrade Novartis to overweight from Neutral with a new 18 month price target of Sfr 78 assuming the stock can approach a sector multiple by mid 2014 which reflects FCF growth beyond 2019 of just below 1%."
Novartis shares were up 56 cents, or 0.81% during Friday morning trading. The stock has increased 28% in the past year.
The Bottom Line
Shares of Novartis AG (NVS) have a 3.64% yield, based on Friday morning's price of $69.57.
Novartis AG (NVS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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